POST UTME CRAWFORD UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm has 5 labor units and 3 capital units, what is the quantity produced?
A. 10
B. 12
C. 15
D. 18
Question 2
A country's GDP is given by the equation Y = C + I + G, where C is consumption, I is investment, and G is government sp\ending. If the country's GDP is ₦100 billion, and consumption is ₦30 billion, investment is ₦20 billion, and government sp\ending is ₦15 billion, what is the value of the marginal propensity to consume?
A. 0.3
B. 0.4
C. 0.5
D. 0.6
Question 3
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 50, what is the consumer's optimal bundle of x and y?
A. x = 2, y = 5
B. x = 3, y = 4
C. x = 4, y = 3
D. x = 5, y = 2
Question 4
Suppose a monopolist faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 5 + P. What is the price that maximizes the monopolist's profit?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 5
A country's GDP is ₦10,000 and its GNP is ₦12,000. U\sing the concept of GDP and GNP, explain why the country's GNP is greater than its GDP.
A. The country has a high level of foreign investment, leading to a high GNP.
B. The country has a high level of domestic production, leading to a high GDP.
C. The country has a high level of imports, leading to a high GNP.
D. The country has a high level of exports, leading to a high GNP.
Question 6
A country's inflation rate is given by the equation π = \( P - P* \) / P*, where P is the current price level, and P* is the base price level. If the current price level is ₦100, and the base price level is ₦90, what is the inflation rate?
A. 0.11
B. 0.12
C. 0.13
D. 0.14
Question 7
A government budget is given by B = T + I, where B is the budget, T is tax revenue, and I is government sp\ending. If the government's tax revenue is ₦1000 and government sp\ending is ₦1500, what is the budget?
A. ₦1000
B. ₦1500
C. ₦2000
D. ₦2500
Question 8
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 15, exports are 25, and imports are 10, what is the value of the trade balance?
A. 5
B. 10
C. 15
D. 20
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
A firm faces a total revenue function given by TR = 100Q - 2Q^2. What is the price elasticity of demand at Q = 20?
A. 0.5
B. 1
C. 2
D. 3
Question 11
A firm's production function is given by \( Q = 10L^{\frac{1}{2}}K^{\frac{1}{2}} \). If the firm's input prices are \( w_L = 10 \) and \( w_K = 20 \), what is the firm's optimal input combination?
A. \( L = 10, K = 20 \)
B. \( L = 20, K = 10 \)
C. \( L = 5, K = 5 \)
D. \( L = 20, K = 20 \)
Question 12
A firm operating under a perfectly competitive market structure faces a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average total \cost (ATC) curve at point E, where MR = ATC, what is the firm's optimal price?
A. \( P = \frac{MC}{epsilon} \)
B. \( P = \frac{MC}{eta} \)
C. \( P = MC \)
D. \( P = \frac{MC}{mu} \)
Question 13
A government imposes a tax of ₦10 per unit on a firm's output. If the firm's supply curve is given by Q = 2P - 10, what is the new supply curve after the tax is imposed?
A. Q = 2P - 20
B. Q = 2P - 15
C. Q = 2P - 10
D. Q = 2P + 10
Question 14
The government of Nigeria has implemented a policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy has also led to an increase in the price of agricultural products. U\sing the concept of opportunity \cost, explain why the government's policy may not be effective in increa\sing agricultural production.
A. The policy has increased the opportunity \cost of producing agricultural products, making it less attractive for farmers to produce.
B. The policy has decreased the opportunity \cost of producing agricultural products, making it more attractive for farmers to produce.
C. The policy has no effect on the opportunity \cost of producing agricultural products.
D. The policy has increased the opportunity \cost of producing other products, making it less attractive for farmers to produce.
Question 15
A country's balance of payments is in surplus, with a trade balance of ₦5,000 and a current account balance of ₦3,000. U\sing the concept of balance of payments, explain why the country's balance of payments is in surplus.
A. The country has a high level of exports, leading to a high trade balance.
B. The country has a high level of imports, leading to a low trade balance.
C. The country has a high level of foreign investment, leading to a high current account balance.
D. The country has a high level of domestic production, leading to a low current account balance.

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